CPA Chairman Jose R. Lifoifoi is his letter to Worldwide Salvage Saipan, LLC president James L. McCollum dated Oct. 14, said CPA has approved to engage Worldwide Salvage Saipan in negotiations and discussions for a temporary lease agreement of 1,958 square meters of commercial area at the Port of Saipan.
“We understand your company’s interest in a particular space at the Port of Saipan, but at the present time, the commitment is tentative and only preliminary,” Lifoifoi said.
He said his letter does not constitute any commitment by CPA except to inform Worldwide Salvage Saipan that there is a preliminary understanding that “CPA will consider engaging with Worldwide Salvage Saipan.”
Lifoifoi said the tentative commitment to negotiate with the recycling company is subject to various legal, regulatory, environmental, procedural and due diligence requirements.
CPA would require clearance and resolution of all concerns regarding the company’s proposed operations including but not limited to the prohibition of any storage or placement of discarded or cut-up ship hulls or other metals outside the designated area, he said.
This includes temporary barges or warehouses, and the prohibition of any disposal of any metal on any CNMI property including Tinian, Rota or the Marpi Landfill.
Worldwide Salvage Saipan should also clear issues on the establishment of a facility security plan as required by the U.S. Coast Guard under the Maritime Transportation and Security Act, and the pre-approval by the U.S. Environmental Protection Agency or the U.S. Coast Guard for any incinerator or other toxic substance treating facility before approval of any lease agreement.
Lifoifoi said the challenges for Worldwide Salvage Saipan to commence operations are “substantial,” but CPA has to protect its substantial investment in developing the Port of Saipan and protecting all parties to prevent any damage or incident which would affect the flow of commerce in and out of the port.
“We hope that Worldwide Salvage Saipan understands that these concerns overarch all business development at the Port of Saipan,” Lifoifoi said.
CPA, he added, is optimistic Worldwide Salvage Saipan is equally committed to the prospect of business development in the CNMI.
Worldwide Salvage Saipan earlier asked CPA for a tentative commitment letter to be able to secure a contract with the U.S. Maritime Administration.
Worldwide Salvage Saipan wants to lease a space at the Saipan port for a period of 90 to 120 days.
The company will construct a permanent dock which will be turned over to the CNMI government when the Worldwide Salvage Saipan leaves the island.
The company said it is investing $16 million for the project which is projected to run from 12 to 15 years, and involves the hiring of about 250 people.
WSS will bring in 40 to 50-year old ships from the mainland to be dismantled here then have the dismantled parts and all the toxic materials shipped out.
McCollum said that upon arrival, the ships will be checked for security in terms of toxic waste before it will be hauled on land to be dismantled.
